Prishtina, 6 September 2012 – Minister of Economic Development, Besim Beqaj, said that Kosovo has several concrete projects for the energy sector.

Speaking in the conference dedicated to the energy perspective in Kosovo, Minister Beqaj said that the Government of Kosovo is committed to implement strategies and policies aimed at securing security of supply, ensuring affordable energy, and implementing highest environmental standards.

On the issue of energy decentralization, Minister Beqaj said that KEDS privatization is in line with the energy sector decentralization in Kosovo.

“KEDS privatization is in its final phase. Deadline for submission of bids was in May 2012, and we have received two bids from prequalified bidders, one from the Calik-Limak Consortium from Turkey, and another from Elsewedy Electric from Egypt. In June, Consortium Calik-Limak was announced as preferred winner, offering the highest price of €26.3 million. We are in the final phase and we are preparing to sign the Share Purchase Agreement”.

Economic Development Ministers added that KEDS privatization has a series of advantages compared with similar privatizations in the region.

“Introducing private sector capital in the KEDS business ensures that capital investments in the distribution network enhance the operational efficiency, improve general services for consumers and security of supply. In addition, KEDS should fulfill many aggressive targets to reduce technical and commercial losses, determined by the Energy Regulatory Office”, he added.

Through the Government Privatization Committee and Transaction Advisors-IFC, Kosovo Government has continuously ensured that the process is open, competitive, and transparent. With the support of all stakeholders in the energy sector and the donor community, KEDS privatization process is structured in a way of ensuring that there will be no long-term burdens on the Kosovo budget. Lessons learned from regional privatizations of distribution and supply have resulted with the establishment of a structure where there will be no government subsidies for the private company in case of non-collections, and there will be no sovereign state guarantees which could create conditioned liabilities for the fragile budget of Kosovo, said Minister Beqaj.

Speaking on the “Kosova e Re” Power Plant Project, Minister Beqaj said that the project is projected as a power plant with a net capacity of 2 x 300 MW, based on the newest available technologies in the region and development of lignite mining capacities in the Sibovc mine.

This project is in line with all EU Environmental Directives, such as the new “Directive on Industrial Emissions”, envisaging investments of around €1 billion, in both the Power Plant and the Mine.

Highly motivated and qualified bidders! The Project is supported by the World Bank, EU and other international organizations.

The Project ensures co-generation, which will provide heating for the district heating system of Prishtina (with KfW financing), ensures new jobs in the energy generation sector, mining and auxiliary services.

Minister Beqaj said the the winning bidder will be selected in 2013, and construction is expected to start in 2014, and the plant is expected to be commissioned in 2018.

Energy generation from renewable sources is based on low hydro and wind capacities. Currently, energy is generated from the following renewable energy sources: Hydro; 45.8 MW, Wind; 1.35 MW.

Based on the studies on small hydropower plants, Kosovo’s hydro potential is a total of 127 MW and we expect to receive new applications for energy generation blocks through water sources.

“Meanwhile, by the end of the year, we will define RES targets for Kosovo, which will be the basis for further development of feed-in tariffs for other renewable sources, such as solar and geothermal. According to the data, ERO is in the process of reviewing 14 applications for renewable energy”, said minister Beqaj.
Speaking on the Zhur Hydropower Plant, Minister Beqaj said that they are currently in the process of creating a Working Group (relevant Ministries, ERO, etc.), to analyze the current situation of the project, and propose recommendations to identify the best development option.

In terms of energy efficiency, Kosovo has signed the Energy Community Treaty in 2005, established the Kosovo Energy Efficiency Agency (April 2012), drafted and approved the National Energy Efficiency Action Plan (NEEAP) 2010-2018, with a savings target of 9%.

“Currently, several projects are under implementation, financed by the budget of the Republic of Kosovo and donors. Total value of investments in the EE sector is over €30 million”, said Minister Beqaj.